IWMI vs QQQ
NEOS Russell 2000 High Income ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | IWMI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.68% | 0.18% | |
| AUM | $1.2B | $496.3B | |
| Dividend Yield | 13.83% | 0.44% | |
| Holdings | 4 | 108 | |
| YTD Return | +6.43% | +16.23% | |
| 1Y Return | +16.84% | +26.23% | |
| 3Y Return (annualized) | - | +25.75% | |
| 5Y Return (annualized) | - | +14.78% | |
| Volatility (annualized) | 13.5% | 30.6% | |
| Max Drawdown | -23.9% | -83.0% | |
| Fund Family | NEOS | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 25, 2024 | Mar 10, 1999 |
IWMI vs QQQ Performance
NEOS Russell 2000 High Income ETF (IWMI) is a ETF from NEOS and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year IWMI returned +16.84% while QQQ returned +26.23%. Year to date, IWMI is up 6.43% versus a gain of 16.23% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 13.5% for IWMI. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -23.9% for IWMI and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.70. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IWMI charges 0.68% per year while QQQ charges 0.18%. On a $10,000 position that is $68 vs $18 annually, a gap of $50 per year that compounds over a long holding period. On income, IWMI currently yields 13.83% against 0.44% for QQQ.
Holdings Overlap
IWMI and QQQ share 0 holdings out of 103 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IWMI or QQQ?
IWMI has an expense ratio of 0.68% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $50 per year of difference.
Which performed better, IWMI or QQQ?
Over the past year IWMI returned +16.84% vs +26.23% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), IWMI annualized +12.93% vs +13.02% for QQQ. Past performance does not guarantee future results.
Which is riskier, IWMI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 13.5% for IWMI. Worst drawdown: IWMI -23.9% vs QQQ -83.0%.
Should I hold both IWMI and QQQ?
IWMI and QQQ have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IWMI and QQQ?
IWMI and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 103 unique securities.
Which pays a higher dividend, IWMI or QQQ?
IWMI yields 13.83% while QQQ yields 0.44%, so IWMI currently pays the higher dividend yield.
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